Page 10

THE ASCENDANCE OF INVESTMENT MIGRATION IN EMERGING MARKETS

by Dr. Juerg Steffen CEO, Henley & Partners

The first two decades of the 21st century saw emerging markets powering to the fore, and emerging global wealth experienced huge growth. According to New World Wealth’s 2019 Global Wealth Migration Review, China’s wealth growth rate in the decade between 2008 and 2018 was the highest globally at an astonishing 130%, India’s was the fourth highest at 96%, and Kenya was in 8th place with a wealth growth rate of 68%. As emerging markets have advanced, economic power has increasingly shifted towards these regions, but while these markets abound with opportunities in the form of a rapidly rising middle class, higher consumption, and attractive returns, the downside is that there are as many (if not more) risks, such as political and economic instability, inferior infrastructure, and poor market access. A growing interest in investment migration As wealth has grown in emerging market countries, acquiring alternative residence or citizenship has become particularly appealing to their citizens, as it enables greater flexibility and participation in the world’s leading economies. Having alternatives is an essential part of any 10 Citizenship By Investment

family’s insurance policy – the more jurisdictions one is subject to, the more diversified one’s assets and the lower one’s exposure to country-specific and global volatility. Many affluent individuals from emerging markets across the world have gained access to business, career, educational, and lifestyle opportunities on a global scale, for themselves and their families, by investing in residence or citizenship programmes, thereby expanding their horizons, enhancing their travel freedom, and transcending the constraints imposed on them by their countries of origin. Covid-19 volatility is a new driver The unprecedented and highly volatile global conditions triggered by the Covid-19 pandemic and the Great Lockdown have forced individuals across the globe to reassess their circumstances, and particularly those in emerging market countries. The disconcerting events of 2020 have also highlighted the unquantifiable value of freedom and having options in times of crisis. During 2020, the world was abruptly and unbelievably grounded by lockdowns and border closures in efforts to curb the coronavirus, further emphasising

the advantages and necessity of having a ‘Plan B’ to protect against future shocks. In addition to the organic growth of alternative residence and citizenship, the coronavirus pandemic appears to have evoked a sharp increase in interest in investment migration programmes by citizens of emerging wealth markets, and with Indian, Kenyan, and Nigerian nationals in particular. There has also been a sustained and extremely high level of interest shown by Pakistani nationals over the past two years, and demand is rapidly regaining traction in South Africa. At Henley & Partners we saw an astonishing 81% increase in enquiries from Indian nationals in the first three quarters of 2020 compared to the same period in 2019. Enquiries from Nigerian nationals rose by 25% in the same timeframe. Both countries also elicited high levels of enquiries last year, so this growth in 2020 is doubly impressive. The number of enquiries from Kenyan nationals shot up by a remarkable 110% in the first three quarters of 2020 compared to the same period last year, and while Kenya’s 2019 levels were not as high as India’s and Nigeria’s, this strong uptake in 2020 is certainly a significant change in a market that is still being established.

Profile for BLS Media

CBI Winter 2020-2021  

Citizenship by Investment (CBI) is the publication for HNWIs and UHNWIs looking to find out the latest developments in economic citizenship,...

CBI Winter 2020-2021  

Citizenship by Investment (CBI) is the publication for HNWIs and UHNWIs looking to find out the latest developments in economic citizenship,...

Profile for bls-media
Advertisement

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded